Barrick Gold (ABX.TO) has returned to the Green Favored Zone of the SIA S&P/TSX 60 Index Report from a winter dip down into the red zone. Currently, it is sitting in the 14th position, up 9 spots in the last month.
Since bottoming out last fall, Barrick Gold (ABX.TO) shares have been in recovery mode, with its 50 and 200-day moving averages having completed a bullish Golden Cross back in January. An initial rally and correction have moved the shares into the $21.50 to $26.50 zone, a range ABX.TO appears poised to break out of. Their first initial upside test appears at a long-term downtrend line near $27.50 where a breakout would confirm the start of a new uptrend.
Next potential resistance after that appears in the $30.00 to $31.50 zone between a round number, a measured move, and a retest of last year’s spring peak. In a pullback, initial support could emerge near the $25.00 round number, or the 50-day average near $24.00.
Barrick Gold (ABX.TO) bottomed out back in November and since then, the shares have been under renewed accumulation. An initial rally that lasted through to February snapped a downtrend line, A winter correction was moderate, not enough to trigger a high pole warning. In recent weeks, the shares have started to climb once again and this month, they have completed a bullish Double Top and a Bullish Catapult.
Initial upside resistance may appear near the $30.00 round number, followed by $31.30, where a previous column high and a horizontal count converge. Initial support appears near $24.65 based on a 3-box reversal. With a perfect SMAX score of 10, ABX.TO is exhibiting strength across the asset classes.
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